Explain the Difference between a Positive and Negative Delta.
A positive Delta (0 to 1) is associated with long positions in call options and short positions in put options. It means the option's value moves in the same direction as the underlying asset.
A negative Delta (-1 to 0) is associated with long positions in put options and short positions in call options. It means the option's value moves in the opposite direction to the underlying asset.
Glossar
Positive Delta
Direction ⎊ Positive delta signifies a directional exposure where the value of the options position is expected to increase as the price of the underlying cryptocurrency rises.
Negative Delta
Imbalance ⎊ A negative delta, within cryptocurrency options and derivatives, signifies a position exhibiting negative convexity; its value decreases as the underlying asset’s price increases, a characteristic particularly relevant when assessing risk exposures in volatile markets.